Background Information: The decade preceding the 1930s was a time of great economic prosperity and social innovations. However, this soon came to a halt by the end of the 1920s on the day the stock market crashed. This consequently triggered a decade long depression, the longest and worst depression in American history.
Pre-depression
Causes Leading Up to the Depression v Lack of Diversification: Prosperity had depended entirely on only a few industries, rather than many. In the late nineteen 20s many of those industries started to decline. v Misdistribution of Wealth: As industrial and agricultural production increased the profits were going a select percentage of the population. As a result most people were not spending very much due to how little they were taking in. v Credit Structure: The farmers were deeply in debt and unable to pay back their loans, this caused many small banks to fail. v Bank Investment: Many of the larger American banks were investing recklessly in to stock market. v Declining Exports: After WWI Europe was in great demand for U.S. products. That demand shrunk toward the late 1920s due to the fact that European industry was becoming more productive or in other places just to poor to afford foreign goods. v International Debt Structure: After WWI all of the allied nations owed large sums of money to American banks. Those nations in hard economic times could not afford to pay the U.S. back. The American government started loaning money to European nations with which they paid America back with only creating more debt. Depression
Presidents
Calvin Coolidge (1923-1929)
Herbert Hoover (1929-1933)
Franklin D. Roosevelt (1933-1945)
Herbert Hoover Herbert Hoover was elected in 1928. He believed in limited government involvement in the economy. Some his programs included:
(1929) Agricultural Marketing Act: gave the government the role of stabilizing agriculture.
(1930-1931) Hoover raised federal budget for public works to $423 million.
(1932) There was a moratorium of Allied Reparations.
(1932) Reconstruction Finance Corporation (RFC): gave money to businesses hoping that it would work its way down to the people.
(1932) Glass-Steagall Banking Act: government securities available to guarantee Federal Reserve notes.
All of these programs proved to be too little too late. The American people already blamed Hoover for the hard times and the country had fallen into depression.
The New Deal
The New Deal was proposed by Franklin D. Roosevelt. It was meant to help the country lift itself out of the Great Depression but there were no steps established before FDR took office.
Soon after taking office, FDR began the reform process. He had several acts passed intended to help out the citizens of the United States. However, some people argued they didn’t help at all.
These reform programs include:
1933
AAA (Agricultural Adjustment Act)-Set crop prices to stop the fluctuation that hurt the famers. Farmers were also paid to not grow certain crops that were being overproduced.
CWA (Civil Works Administration)-Provided jobs to four million unemployed people but this ended in March of 1934.
CCC (Civilian Conservation Corps)-Gave men ages 18 to 25 jobs in reforestation, construction, and developing national parks.
FERA (Federal Emergency Relief Act)-Provided states with money for relief projects to help the unemployed.
FDIC (Glass-Steagall Act)-Federal insurance of bank deposits of up to $5000.
NRA (National Recovery Administration)-Created fair practice codes that outlawed child labor, set a minimum wage, maximum weekly hours, and minimum prices for goods.
PWA (Public Works Administration)-Was provided with $3.3 million to create public works projects in order to help the unemployed.
1934
SEC (Securities and Exchange Commission)-Oversaw the stock market and tried to stop margin buying.
1935
NYA (National Youth Administration)-Gave jobs to college and high school students.
Social Security-Provided the unemployed with an income. It also helped the blind, deaf, handicapped, and dependent children.
NLRB (Wagner Act)-Encouraged workers to join unions and made union-busting tactic illegal.
WPA (Works Progress Administration)-Gave about 8.5 million people jobs in construction (among others) or in the arts, theater, and literary projects.
Cultural Impact
Radio: Almost every American family owned a radio in the 1930s. Kids would often sit on the front porch with friends and listen to sporting events, news or music. Radios were the first direct access to public events like the World Series, big college football games and the academy awards. Not only did they provide entertainment but radios also broadcasted news so that all Americans were informed.
Movies: Although in the first few years of the depression movies were not very popular, by the mid-30s movie goers were more common than ever. People were looking for something very inexpensive but exciting and they found this in movies. Hollywood made sure to keep films light and not at all controversial.
Journalism: A lot of the 30s literature dealt with disillusionment and radicalism. However the most popular books of the day were romantic and escapist.
Different Groups Effected
The Dust Bowl: During the 1930s, in the Great Plans of the south and west, rainfall started declining while heat increased. This drought lasted a decade and turned once fertile soil into desert land. Many of the people living in this region moved to California.
Farmers: Between 1929 and 1932 farm income declined by 60% and a third of all farmers lost their land during the 30s due to overproduction and the fluctuating crop prices.
African Americans: Like in all of times in the U.S. the blacks had it worse. They experienced more unemployment, disease, malnutrition and homelessness than whites. By 1932 half the blacks in the south over half the blacks were unemployed. Almost 400,000 came up north but conditions were little better and jobs often went to whites before blacks.
Mexicans and Asians: They were victims to similar discrimination the African Americans faced. They had trouble finding jobs and when they did they were not well paid.
Post-depression Although the new deal programs did some to help citizens of the United States, it was not until World War II began and industrial production increased that the nation was lifted out of the depression. However people were left with distrust for the banking system and fear of hard times.
Catherine Cocola
The Great Depression
Background Information:
The decade preceding the 1930s was a time of great economic prosperity and social innovations. However, this soon came to a halt by the end of the 1920s on the day the stock market crashed. This consequently triggered a decade long depression, the longest and worst depression in American history.
Pre-depression
Causes Leading Up to the Depression
v Lack of Diversification: Prosperity had depended entirely on only a few industries, rather than many. In the late nineteen 20s many of those industries started to decline.
v Misdistribution of Wealth: As industrial and agricultural production increased the profits were going a select percentage of the population. As a result most people were not spending very much due to how little they were taking in.
v Credit Structure: The farmers were deeply in debt and unable to pay back their loans, this caused many small banks to fail.
v Bank Investment: Many of the larger American banks were investing recklessly in to stock market.
v Declining Exports: After WWI Europe was in great demand for U.S. products. That demand shrunk toward the late 1920s due to the fact that European industry was becoming more productive or in other places just to poor to afford foreign goods.
v International Debt Structure: After WWI all of the allied nations owed large sums of money to American banks. Those nations in hard economic times could not afford to pay the U.S. back. The American government started loaning money to European nations with which they paid America back with only creating more debt.
Depression
Presidents
Herbert Hoover
Herbert Hoover was elected in 1928. He believed in limited government involvement in the economy. Some his programs included:
- (1929) Agricultural Marketing Act: gave the government the role of stabilizing agriculture.
- (1930-1931) Hoover raised federal budget for public works to $423 million.
- (1932) There was a moratorium of Allied Reparations.
- (1932) Reconstruction Finance Corporation (RFC): gave money to businesses hoping that it would work its way down to the people.
- (1932) Glass-Steagall Banking Act: government securities available to guarantee Federal Reserve notes.
All of these programs proved to be too little too late. The American people already blamed Hoover for the hard times and the country had fallen into depression.The New Deal
- The New Deal was proposed by Franklin D. Roosevelt. It was meant to help the country lift itself out of the Great Depression but there were no steps established before FDR took office.
- Soon after taking office, FDR began the reform process. He had several acts passed intended to help out the citizens of the United States. However, some people argued they didn’t help at all.
- These reform programs include:
1933- AAA (Agricultural Adjustment Act)-Set crop prices to stop the fluctuation that hurt the famers. Farmers were also paid to not grow certain crops that were being overproduced.
- CWA (Civil Works Administration)-Provided jobs to four million unemployed people but this ended in March of 1934.
- CCC (Civilian Conservation Corps)-Gave men ages 18 to 25 jobs in reforestation, construction, and developing national parks.
- FERA (Federal Emergency Relief Act)-Provided states with money for relief projects to help the unemployed.
- FDIC (Glass-Steagall Act)-Federal insurance of bank deposits of up to $5000.
- NRA (National Recovery Administration)-Created fair practice codes that outlawed child labor, set a minimum wage, maximum weekly hours, and minimum prices for goods.
- PWA (Public Works Administration)-Was provided with $3.3 million to create public works projects in order to help the unemployed.
1934- SEC (Securities and Exchange Commission)-Oversaw the stock market and tried to stop margin buying.
1935Cultural Impact
- Journalism: A lot of the 30s literature dealt with disillusionment and radicalism. However the most popular books of the day were romantic and escapist.
Different Groups EffectedPost-depression
Although the new deal programs did some to help citizens of the United States, it was not until World War II began and industrial production increased that the nation was lifted out of the depression. However people were left with distrust for the banking system and fear of hard times.
For More Information please visit:
http://xroads.virginia.edu/~ma02/volpe/newdeal/timeline_text.html
http://www.english.illinois.edu/maps/depression/about.htm
http://www.amatecon.com/greatdepression.html
Videos:
"The Depression" Video
"New Deal Programs" Video
Sites consulted:
http://www.presidentsusa.net/presvplist.html
http://home.earthlink.net/~gfeldmeth/chart.newdeal.html
http://xroads.virginia.edu/~ma02/volpe/newdeal/timeline_text.html
U.S. History Textbook